Blockchain technology is quickly becoming the driving force behind many futuristic technologies. Financial, medical, and even musical services can all run on blockchain technology, and the most famous example is cryptocurrencies. The concept of the blockchain is wholly new and can be challenging to understand. The primary thing to know is that the blockchain helps make all cryptocurrency transactions completely secure and verifiable.
The blockchain does this by storing a record of every transaction that has taken place on it. A ledger is also stored on every computer on that blockchain. This means that cryptocurrency transactions are recorded in an entirely unalterable way. No single individual can control the blockchain, making it a decentralized platform. This allows for both complete transparency and privacy.
It’s not hard to see why cryptocurrencies are becoming a big part of online betting. They allow for precise tracking of your transactions and are completely secure. Furthermore, since everything is stored digitally, transactions on the blockchain are usually quick.
While the lack of a governing body might worry some, the blockchain makes cryptocurrency the most secure method of sending and receiving funds. All transactions are immediately inscribed into the blockchain itself. Those records cannot be erased or tampered with in any way. These records include both the sender and the receiver along with the amount of cryptocurrency involved. It’s impossible to fake, hack, or double-spend cryptocurrency because of the public ledger.
Blockchain technology also keeps a record of the amount of a given cryptocurrency in circulation. When more cryptocurrency is mined, that information goes into the ledger. This way, the inventor of the currency can’t just give themselves billions of dollars worth of crypto. That’s the original reason that blockchain technology was created, but now you can leverage it to your advantage.
Betting sites were quick to jump onto the blockchain wagon for a few reasons. The increased security afforded by blockchain technology is as essential to them as it is to bettors. Sportsbooks can protect themselves from attempted fraud, and bettors can be confident when and where their funds are going.
What are the benefits of blockchain?
While security is the primary reason so many betting sites accept cryptocurrency, there are plenty of additional reasons. Speed is another major factor for sportsbooks; the faster that they can receive and send out funds, the better. This means that cryptocurrency deposits and withdrawals will usually be much quicker than traditional methods. The low cost associated with sending crypto also means fewer fees and lower limits.
Blockchain also takes care of record-keeping for both the house and bettors. If you want to keep track of your betting transactions without reaching for a pen and paper, crypto is a great choice. You can review the blockchain ledger at any time to keep track of your cryptocurrency.
Esports bettors in particular are very keen on cryptocurrencies. They’re quick to welcome new technology, of course, and certain aspects of cryptocurrencies suit esports betting the best. Unlike in traditional sports, where the games are called weeks or months in advance, esports usually have multiple rounds of a tournament on the same day. That means new matchups that the sportsbook has to prepare just minutes before the series.
The speed of cryptocurrency transactions lets esports bettors immediately fund their account to prepare for a certain match. An NFL or NBA bettor doesn’t need to adjust their accounts on the fly based on tournament results; this issue almost solely affects esports bettors. By sending quick and cheap transactions on the blockchain, esports fans can manage their accounts along with a tournament’s progression.
Public vs. Private blockchains
While both types provide the benefits of security and speed, there are two major types of blockchains that a bettor should know about; public and private.
Public blockchains are accessible to anyone that wants to join. These kinds of blockchains make up the most popular cryptocurrencies around, such as Bitcoin and Ethereum. Remember the public ledger that every blockchain generates? In a public blockchain, everyone has access to the ledger at any given moment. Each computer in the blockchain is counted as equal, and all additions to the ledger have to be unanimous. None of the computers can individually change the ledger, making it secure and transparent.
Private blockchains are not quite as welcoming as public ones. You must be invited to join a private blockchain, and these blockchains do not treat all computers in the blockchain as equal. Not every node can see, add to, or audit the blockchain. There might be different levels of clearance in a private blockchain, and it is possible to alter or remove transactions from the ledger. These kinds of blockchains are meant for businesses, schools, and other organizations to use as a centralized and secure record-keeper. JP Morgan’s proprietary cryptocurrency runs on a private blockchain, but the majority of cryptos stick to public blockchains.